Stewardship Pays — Because Dairy Farmers Make It That Way

In the dairy business, feel-good attitudes don’t keep the lights on. Margins do.

That’s why U.S. dairy producers’ status as stewardship leaders, one reflected every day in smart business decisions, matters so much — not as a public relations exercise, but as a powerful, hard-earned advantage that strengthens productivity, manages risk, and improves profitability by putting farmers in the driver’s seat of innovation.

Public discussion about agriculture at times treats stewardship and profitability as parallel conversations — one is about social responsibility (whatever that may mean), while the other is about returns. A dairy farmer’s reality is very different. On dairies, stewardship is a business strategy that improves efficiency, manages risk, and strengthens U.S. dairy’s competitiveness at home and abroad. Its success hinges upon being farmer‑led, incentive‑based, and grounded in economics rather than mandates.

Efficiency has always been the foundation. To use a recent buzzword, you know what “regenerative ag” is to me? It’s the stuff my dad has emphasized on the farm for the past 50 years, and it’s stuff dairy farmers do every day.

Investments in genetics, nutrition, and cow comfort have dramatically increased milk output per cow over generations, to the point where one cow today produces five times as much milk as her counterpart did at the end of World War II. That lets farms produce more milk with fewer animals and fewer inputs. It improves margins by reducing feed costs per unit of production. And that, along the way, lowered the environmental footprint of producing milk; since 2007, U.S. dairy farmers have seen a 14.7% decrease in greenhouse gas emissions intensity from cradle-to-farm gate. These productivity gains aren’t a slogan to save the planet — they’re a core economic outcome, and they’ve saved family farms.

Manure management offers one of the clearest examples of stewardship paying off. Precision nutrient application, improved storage, and data‑driven planning help farmers capture more value from nutrients they already own. Replacing purchased fertilizer with managed manure reduces input costs and stabilizes crop yields. What may once have looked to some farmers like an environmental obligation has become what the smart ones always knew it would be: a balance‑sheet asset, driven by efficiency.

Anaerobic digesters are another example. They’re not cheap, but when properly scaled and paired with the right revenue streams, a well-designed digester that turns methane into natural gas can pay for itself within 5 to 8 years, according to Penn State Extension and AgSTAR research. In 2026, it’s not uncommon for a dairy producer to get checks for selling milk, beef and energy. That’s diversification. That’s innovation. That’s smart stewardship.

Dairy’s ag-leading stewardship, which can include everything from water recycling to LED lighting, doesn’t just help on-farm. Sustainability has become part of the trade conversation as American dairy exports have grown. Global buyers increasingly ask how food is produced as well as its price. Thanks to the leadership of its own farmers, the U.S. dairy industry holds a meaningful advantage.

Stewardship strengthens export competitiveness. Because the U.S. can produce more milk with fewer cows, less land, and fewer inputs, U.S. cheese and dairy ingredients compete globally on both cost and credibility.

A comparison with the European Union, the biggest U.S. export rival, is instructive. EU dairy producers operate under far more prescriptive environmental regulations that often impose fixed requirements regardless of farm size, geography, or economics. These mandates raise costs and discourage innovation, creating a mindset of doing the minimum needed for compliance. That’s light-years away from U.S. dairy’s culture of continuous improvement, which thrives through a voluntary, incentive‑based approach that lets farmers innovate, scale solutions, and improve efficiency in ways that keep costs lower and delivers environmental benefits.

U.S. dairy’s ability to demonstrate real, measurable progress without locking producers into rigid systems enhances the entire industry — and keeps environmental standards from becoming tools to exclude American products, or create limitations on the wide variety of business models that help our dairy farms thrive.

Stewardship also supports supply‑chain reliability. Farms that invest in nutrient efficiency, water management, and energy resilience are better positioned to withstand weather variability and input shocks. That stability flows through processors to international customers who want consistency as much as sustainability.

The common thread through all of this is farmer leadership.

American dairy stewardship is impressive. Just as important is how it’s been achieved — through voluntary, incentive‑based programs that respect farmers as problem‑solvers and avoid the heavy hand of government regulation. Cost‑sharing, technical assistance, and market incentives reduce upfront risk and preserve farmer flexibility. Farmers choose systems that fit their herd size, geography, and business model instead of forcing compliance with one‑size‑fits‑all mandates that may not deliver results.

This approach has allowed dairy farmers to make stewardship a key to profitability that has reduced emissions, improved efficiency, and strengthened their businesses — not because they were forced to, but because the incentives made economic and business sense.

U.S. dairy farmers have earned respect at home and abroad for their stewardship — and they’ve certainly earned their living. They’ve shown how private-sector, incentive-led solutions fuel profits and build trust over decades, setting them up for more progress in the decades to come — if left to do what they do best.

Buzzwords and trends come and go. Policy discussions evolve. Through all of it, dairy producers continue to evolve as stewards because they’re smart business owners, insightful innovators, and responsible operators. They will ensure their farms are efficient, productive and profitable, and they will leave their farms to the next generation in better shape than they found it.

That’s stewardship. That’s leadership. That’s dairy farming.


Gregg Doud

President & CEO, NMPF

 

Trade Pacts Offer Dairy Opportunities, Trade Leader Morris Says

The United States is negotiating bilateral trade agreements at a frenetic pace across the globe. Dairy’s key to success has been a proactive approach that gets the fundamentals of industry needs right, said Shawna Morris, an executive vice president with NMPF and the U.S. Dairy Export Council, in a Dairy Defined Podcast released today.

“On the whole, a lot of good stuff coming down the pipe,” said Morris, specifically citing agreements with Indonesia and Taiwan as holding potential for significant market expansion, for dairy, which saw its second-best year for exports in 2025. Both in advising the U.S. government on agreements and maintaining gains overseas, NMPF/USDEC trade efforts are matching the federal government’s in its intensity, she said.

“Our focus really is on, how do we make sure that we’re keeping the doors open, and also looking at some of the policy tools that can be leveraged in order to expand consumption or dairy access more broadly,” Morris said.


Latin America’s first dairy nutrition summit

By Jaime Castaneda, Executive Vice President, Policy Development & Strategy

Against the backdrop of one of the world’s fastest-growing regions for dairy demand, the inaugural Latin American Dairy Nutrition Congress, NutriLact Congress 2026, brought together leading scientists, health professionals, and policymakers Feb. 25 to 26 in Lima, Peru.

Co-chaired by the National Milk Producers Federation’s (NMPF) Jaime Castaneda and Shawna Morris and organized by the U.S. Dairy Export Council (USDEC) and the National Dairy Council (NDC), the two-day event marked an important step in countering anti-dairy narratives that have increasingly taken hold in Latin America. It brought decision-makers and leading academics from across the region together to engage with the latest science on dairy’s role in healthy diets.

Dairy at the center

Over the past several years, NMPF and USDEC have met with a network of industry partnerships across Latin America. Those international dairy sector partners were deeply concerned by the misinformation coming from health ministries and medical leaders across the region. It reflected inaccurate, outdated information about the health effects of consuming dairy and was increasingly showing up in policies impacting both domestic and imported dairy products.

This posed a growing threat to dairy demand in a key region for U.S. dairy exports. To address it, USDEC applied for USDA funding to organize an event that would bring leading scientific experts to the region to help close the information gap. NDC partnered on the project, contributing its scientific expertise and connections across the medical and academic communities.

Promoting dairy’s role in healthy diets

The Congress was organized around the theme of “Generational Nutrition and the Role of Dairy,” with the goal to examine how dairy foods can support health at every stage of life, from pregnancy and early childhood to adolescence, adulthood, and healthy aging.

More than 20 experts shared the latest research on dairy’s role in providing important nutrients and supporting overall health.

All told, more than 300 attendees from 17 countries traveled to Lima, including representatives from research institutions, health ministries, and international organizations such as the United Nations’ Food and Agriculture Organization and the Pan-American Health Organization.

Turning research into action

A key focus of the Congress was translating research into real-world solutions. Panels brought together scientists and government officials to talk about how dairy can be included in everything from national dietary guidelines and school meal programs to maternal and child nutrition initiatives and clinical nutrition practices.

Speakers from leading institutions, including Harvard Medical School, Tufts University, and Mayo Clinic, presented research on heart health, child development, pregnancy nutrition, and meeting essential nutrient needs, and provided policymakers and health leaders with practical, evidence-based tools they can use in their own countries.

NutriLact Congress 2026 was not a one-time event, but rather the beginning of a longer-term regional effort to ensure that accurate information about dairy can consistently shape health policies and medical advice across Latin America to support dairy consumption in the region.

U.S. Dairy: Ready to meet Latin America’s demand

Beyond the science, the Congress underscored a practical reality: As Latin American governments and health systems talk about the benefits of dairy to close nutritional gaps, dairy consumption will increase. The United States is uniquely positioned to help meet that demand.

U.S. dairy exports to Latin America have grown steadily, and the region is seen as one of the most promising markets for future growth.

The NutriLact Congress was about more than sharing science. It was also about building trust and long-term partnerships. By positioning U.S. dairy as a reliable, research-backed partner in Latin America’s nutrition efforts, this initiative helped lay the foundation for stronger trade relationships and continued collaboration in the years ahead.

 


This column originally appeared in Hoard’s Dairyman Intel on March 19, 2026.

U.S. Dairy Testifies on State of Maritime Supply Chain

Tony Rice, Senior Director of Trade Policy at the National Milk Producers Federation and U.S. Dairy Export Council, testified today before the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust on the maritime supply chain challenges faced by the U.S. dairy industry.

The U.S. dairy industry exported $9.6 billion and three million metric tons of cheeses, milk powders, whey proteins, and other dairy products last year, making reliable transportation vital to its economic wellbeing. Yet American dairy exporters have little choice but to rely on a small number of ocean carrier options, almost all of which are foreign owned.

“Dairy farmers milk their cows 365 days a year,” Rice said. “When export shipments are delayed, cancelled, or become more expensive to move, the disruptions ripple back through the supply chain and ultimately affect farm income.”

Rice drew on lessons from the pandemic-induced supply chain crisis, when severe delays, routinely cancelled bookings and unprecedented port congestion disrupted cargo movements and cost U.S. dairy producers billions in unexpected costs and lost sales opportunities. While the Ocean Shipping Reform Act of 2022 addressed several issues related to unfair fees, Rice highlighted that dairy exporters in the U.S. continue to face operational uncertainty when bookings are rejected, port calls are skipped or receiving windows shift without explanation.

To address these challenges, the U.S. dairy industry called for greater investment in the domestic maritime sector to expand American shipbuilding capacity, robust Federal Maritime Commission oversight of the global maritime carrier marketplace and increased transparency from ocean carriers on booking decisions.

“We recognize the importance of efficient global shipping networks,” Rice said. “Our concern is ensuring that those networks work for American dairy exporters as well as they work for global carriers.”

U.S.–Ecuador Agreement Improves Access to Tightly Restricted Dairy Market

The National Milk Producers Federation, U.S. Dairy Export Council, and the Consortium for Common Food Names praised Friday’s signing of a U.S.–Ecuador agreement on reciprocal trade. The agreement would improve export opportunities for U.S. dairy products in a market that has been plagued by restrictive tariffs and nontariff trade barriers.

The deal is slated to eliminate tariffs on several U.S. dairy products; recognize U.S. regulatory oversight, including commitments to eliminate facility listing requirements and accept dairy certificates issued by U.S. regulatory authorities; overhaul Ecuador’s burdensome import licensing system for agricultural products; and protect 40 common cheese names like “parmesan.” U.S. dairy exporters have faced challenges in these areas in this market.

“Ecuador has long been a difficult market for U.S. dairy exporters to crack,” said Krysta Harden, president and CEO of USDEC. “This agreement puts in place the strong nontariff disciplines needed for U.S. dairy exporters of ingredients and various cheeses to make headway in growing their sales to Ecuador, while also improving the tariff landscape in this market.”

“Ambassador Greer, Ambassador Callahan and the USTR team have racked up yet another win for American dairy farmers with this Ecuador agreement,” said Gregg Doud, president and CEO of NMPF. “With an unprecedented investment in U.S. dairy manufacturing capacity, deals like this are vital to making it easier for international buyers to source the great products our dairy companies are making.”

“The European Union has been working aggressively in Ecuador for several years now to pursue market restrictions impacting sales opportunities for both local product and other non-EU products,” said Jaime Castaneda, executive director of CCFN. “Our thanks to the USTR team, in particular Ambassador Callahan, for delivering strong common names protection that will provide greater opportunities to sell U.S. products like ‘parmesan’ and ‘bologna’ in a growing region of Latin America.”

The agreement is the tenth trade deal secured to date by the Administration that includes new market access for U.S. dairy products. USDEC, NMPF and CCFN remain committed to working with the Administration to support implementation of the agreement’s provisions.

Affordable Nutrition? Dairy Delivers

A public service announcement: In 2026, when it comes to nutrition and affordability, dairy is tough to beat.

A look at consumer price data since 2023 shows dairy products staying affordable even as rising food costs elsewhere and overall inflation eats at family budgets, with year over year costs consistently rising at less than a 2 percent annual rates since the middle of that year, at times even declining. Despite volatility in milk prices, retailers have found ways to maintain stable prices at the grocery store, recognizing that keeping dairy affordable ensures nutritious products keep reaching consumers across the country — and bringing them into their stores.

And why wouldn’t they? With 13 essential nutrients and a reputation for quality, milk and dairy products consistently deliver for everyone. It’s bright news at the grocery store in an economy that’s challenging for many. And it bodes well for the future, as consumers remember what nourished them as they made ends meet.

NMPF Applauds House Agriculture Committee for Advancing Farm Bill with Dairy Wins

The National Milk Producers Federation today thanked members of the House Agriculture Committee for advancing a farm bill in Congress, noting the bipartisan approval of a plan introduced by Chairman Glenn “GT” Thompson, R-PA, that contains provisions important to dairy farmers and their cooperatives. 

“We applaud Chairman Thompson and members of the House Agriculture Committee for advancing the 2026 House Farm Bill, which includes key provisions that support and strengthen the dairy industry,” said Gregg Doud, president and CEO of NMPF. “We stand ready to work with members of both the House and Senate on a bipartisan basis to pass a farm bill this year that will provide critical support for dairy farmers and their cooperatives.” 

Key dairy provisions that NMPF advocated for include: 

  • Authorizing long-term dairy product processing cost surveys; 
  • Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program; 
  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program (EQIP), with a continued designation of conservation funds for livestock producers and a directive for states to prioritize methane-reducing practices; 
  • Establishing a long-term policy directive for the U.S. government to proactively negotiate protections for common cheese names like “parmesan” and “feta,” as championed by NMPF; 
  • Moving Food for Peace program administration to USDA and continuing $200 million in annual funding for Ready-to-Use Therapeutic Foods that incorporate milk powder to treat chronic malnutrition globally; 
  • Reassigning export promotion funding initially passed last year into existing farm bill programs, including the Market Access Program; 
  • Expanding economic opportunities for farmers to partner with local food distribution organizations to provide fresh, locally grown foods, including milk and other dairy products, to eligible community institutions; 
  • Including full-fat fluid milk, hard cheeses, and yogurt in the Dairy Nutrition Incentive Program;  
  • Expanding the REAP Program to include farmer-owned cooperatives with less than 2,500 employees;  
  • Reauthorizing the Farm and Ranch Stress Assistance Network; and 
  • Continuing the ROPS Rebate Program under USDA, establishing cost-share grants for retrofitting agricultural tractors with rollover protection structures. 

NMPF Staff Outreach Runs from Phoenix to Peru

The new year has seen NMPF staff sharing expertise and supporting the industry domestically and abroad.

Vice President of Economic Policy and Market Analysis Stephen Cain gave a protein-focused economic outlook Feb. 10 at the Farm Journal Top Producers meeting in Nashville. Senior Vice President of Global Economic Affairs Will Loux presented to the Board of Directors of Lone Star Milk Producers Feb. 18 in Dallas, followed by a Feb. 24 presentation to the Dairy Management Inc. Board in Phoenix.

The FARM Program partnered with Saputo and the University of Wisconsin-Madison’s Dairyland Initiative for the inaugural USA Dairy Welfare Roundtable, a collaborative discussion of dairy farmers and animal welfare scientists Jan. 21-22 in Madison, WI.

The roundtable focused on prevalent topics within the animal welfare sector, such as lameness, social housing and calf care. Discussion amongst the group helped frame what’s in store for the industry, using a SWOT analysis approach to identify key issues and potential ways to navigate those challenges.

In trade policy, NMPF’s team of Executive vice presidents Shawna Morris and Jaime Castaneda, and Senior Director Tony Rice, along with Senior Director of Regulatory Affairs Miquela Hanselman, spent the week of Feb. 24 in Lima, Peru at the Latin America Nutrition Congress hosted by the U.S. Dairy Export Council.

And NMPF Executive Vice President Alan Bjerga spoke to dairy farmers Jan. 28 at the Colorado Farm Show in Greeley, focusing on recent policy wins and efforts to support farmers during a time of low milk prices.

Organizations interested in having NMPF staff take part in their events should contact Casey Kinler, ckinler@nmpf.org.

FDA Finalizes Cottage Cheese Exemption

After nearly a decade of back-and-forth, FDA announced Feb. 19 that Grade “A” cottage cheese is getting an exemption from FDA’s Food Traceability Rule.

This exemption from the added traceability requirements tied to foods on the Food Traceability List will reduce the record-keeping burden on Grade “A” cottage cheese manufacturers who are already meeting the highest standards set by the Grade “A” Pasteurized Milk Ordinance and regulated by the National Conference on Interstate Milk Shipments.

NMPF supported the passage of the Food Safety Modernization Act in 2011 and agrees that food traceability measures and adequate record keeping are important to food safety. However, since Congress passed FSMA, NMPF has disagreed with the FDA’s approach to determining the list of “high-risk foods” as defined in Section 204 of the law.

Despite NMPF’s many objections, FDA passed a final rule in November 2022 in which all cheeses other than hard cheeses are considered high-risk foods. FDA’s risk-ranking model under this rule places “pasteurized cheese, other than hard” as the highest risk level of all foods in the marketplace — even above cheese made from raw milk. The final rule set a compliance date of January 20, 2026, for all manufacturers to meet the rule requirements, but efforts by NMPF and other industry organizations led FDA to extend the compliance date for the rule by 30 months to July 20, 2028. This extension creates more opportunities for NMPF to push for changes. The Grade “A” cottage cheese exemption from the Food Traceability List announced this month was one change for which NMPF, in conjunction with the International Dairy Foods Association, pushed very hard. The Food Traceability List originally included cottage cheese because it falls into the category of “Cheese (made from pasteurized milk), fresh soft or soft unripened.”

FDA ultimately agreed with the case NMPF made in September 2024 comments that the oversight already in place from the PMO and its built-in safeguards make extra traceability steps unnecessary. This common-sense outcome reduces burden while keeping strong food safety protections.

New Trade Deals Include Key Dairy Priorities

Following significant engagement from NMPF and the U.S. Dairy Export Council, the United States signed new trade agreements in February with Indonesia, Taiwan, Argentina and Bangladesh that strengthen export opportunities for America’s dairy farmers. These deals secure reliable market access and remove long-standing non-tariff barriers that have limited sales of U.S. dairy products abroad.

The Indonesia, Taiwan and Bangladesh agreements would end tariffs on all U.S. dairy exports, remove and forestall burdensome facility listing requirements, as well as commit trading partners to protecting over three dozen common cheese names like “parmesan” from European monopolization.

The three markets imported $3.6 billion in total dairy products last year, with just 9% coming from the United States. Removing trade barriers will improve U.S. suppliers’ competitiveness in key Asian markets where dairy consumption is growing quickly.

The Indonesia agreement also builds on NMPF’s strong relationship with the Indonesian dairy industry and government, including a memorandum of understanding (MOU) signed last May with the Indonesian Chamber of Commerce and Industry (KADIN) to expand dairy trade and strengthen commercial ties. NMPF and USDEC also forged an MOU with the Dairy Association of Taiwan last September that combines efforts in growing domestic dairy consumption and support a school-milk initiative.

The Argentina agreement comes at a critical moment, as the South America country moves toward implementing the EU-Mercosur trade agreement that would grant EU suppliers greater market access and potentially hand them exclusive use rights for certain common name cheeses. In the U.S.-Argentina deal, NMPF worked to secure increased market access for several key dairy products, commitments to protect generic terms and measures to preempt more nontariff barriers to trade.

As cleared advisors to U.S. trade negotiators, NMPF and USDEC emphasized the importance of securing durable access to these growing markets, helping ensure that U.S. dairy farmers can compete on a level playing field as the European Union continues to pursue aggressive trade agreements worldwide.

NMPF and USDEC have worked with the administration to ensure new opportunities for U.S. dairy exports are included in all nine of the reciprocal trade agreements signed to date and will continue working closely with USTR and U.S. government partners to ensure full implementation. Implementation timing is uncertain. NMPF will work to ensure that Indonesia, Taiwan, Argentina and Bangladesh fully meet their commitments, supporting open, predictable, and growing export markets for U.S. dairy producers.

DMC Generates $1.69/cwt Payment in January

The Dairy Margin Coverage Program margin for January was $7.81/cwt, generating a payment of $1.69/cwt for coverage at the maximum $9.50/cwt level.  

The low margin was driven by a $1.50/cwt drop in the all-milk price from December and a rise of $0.11/cwt in the January DMC feed cost formula, primarily due to a higher cost of premium alfalfa hay. 

At the beginning of March, the DMC Decision Tool on the USDA website projected a similarly low margin in February, followed by a margin rebound to well above $10.00/cwt for the remainder of 2026, with an average of $10.57/cwt for the year. 

February NEXT-Assisted Export Sales Surpass 54 Million Pounds

NEXT member cooperatives secured 246 contracts in February, adding 54.3 million pounds of product in NEXT-assisted sales in 2026. These products will go to customers in Asia, Europe, North America, Oceania, Middle East-North Africa, Eurasia, South America, Central America, the Caribbean and Sub-Saharan Africa and will be shipped from February through July. 

NEXT is a critical tool for participating U.S. dairy cooperatives to grow export sales, which have become increasingly important for dairy farmers and their cooperatives nationwide. Whether or not a cooperative is actively engaged in exporting, moving products into international markets is essential to generate dairy demand. For more information on the NEXT Program, contact the team at NEXT@nmpf.org. 

The referenced amounts of dairy products reflect current contracts for delivery, not completed export volumes. NEXT will pay export assistance to bidders only when export and delivery of product is verified by submission of required documentation.